"The company will operate a long-term incentive plan for senior employees that will deliver financial rewards if the company achieves certain targets over a three year performance period. As the company did not make Ltip [long-term incentive plan] awards in 2010 it is the company's intention to make awards in 2011 covering 2010 and 2011. The 2010 award will vest in March 2013 and the 2011 in March 2014 or upon successful exit from temporary public ownership if earlier"

The bank has only one executive director – finance director Jim McConville who receives a £350,000 a year salary. He could be entitled to 75% of his salary for both 2010 and 2011 if he is awarded the maximum amount under the Ltip, which suggests a maximum of £525,000.

It was not immediately clear which other "senior employees" might be part of the scheme. Chairman Ron Sandler earns £250,000 but is not part of any bonus schemes while the bank had not had a chief executive since Gary Hoffman quit a year ago. Hoffman was to have received £500,000 for his "gardening leave" before joining start up bank NBNK – which tried to bid for Northern Rock and is still in the running for branches being sold by Lloyds Banking Group – but waived the payment after union outrage.

The annual report spells out that to get the maximum of 75% – described as a "stretch level" – members of the Ltip need to achieve a series of targets. The report states:

"The remuneration committee will be responsible for setting the performance conditions that will apply to awards made under this scheme which will include a financial performance target and a quality of earnings assessment. The quality of earnings assessment will seek to establish the extent to which the financial performance of the company over the three year period was attributable to the efforts management, as opposed to external market factors"

As a result of the sale to Virgin, the senior employees who are awarded the Ltip look as if they will no longer need to wait three years for their payouts.

A Northern Rock spokesman said: "Bonuses are a matter for the board and the remuneration committee and reflect individual and corporate performance and they are also a matter for the shareholder, UK Financial Investments. "